The housing crisis is one of the biggest issues facing the country right now. Councils across the UK are struggling to find enough affordable housing for those that need it, the government is trying to come up with solutions and, all the while, housing stock is becoming harder to procure.
Those in property development have their role to play. There UK needs more housing, and that’s a fact. With this in mind, let’s look at how those working in the property market can ease housing shortages and benefit at the same time.
The Government Needs You
If you work in property development, it’s highly likely you have read about the various plans and schemes aimed at easing the housing crisis and enabling more people to get on the property ladder. Now, the government is putting a firm emphasis on the role of property developers in these efforts.
A recent speech from Prime Minister Theresa May saw her talking about the role of property developers in “restoring the dream” of home ownership. She talked in detail about a need to rewrite planning laws to make it easier for private housebuilders to step up and fill the gaps in construction of new homes.
For property developers, this represents a golden opportunity. There is a huge potential market of home buyers out there that are just waiting for someone to meet their needs. The government proposes to go way beyond its white paper on the issue published last year and allow councils to borrow more money to invest in housing. For property developers, this means councils with new sources of cash who are going to be looking for the land and expertise of property developers to make new housing developments a reality.
The Flip Side
On the other side of the issue, many government plans to increase housing stock have gone nowhere. People are sceptical about anything the PM announces to do with the issue, as there has been scant improvement from other schemes and proposals. For property developers, this means their existing portfolios will only increase in value.
A paucity of housing makes existing stock more valuable. It’s a simple equation but one that is good news for property developers. The longer the shortage of housing goes on, the more people will be willing to pay for those that are available, and property developers can benefit from snapping up housing and property fresh to the market. People need homes, and someone has to provide them, and with such a demand, property developers are perfectly placed to reap the rewards.
If you’re thinking about investing in property, or want to expand your existing portfolio with expansion capital get in touch with GIC Capital today.